Friday, January 30, 2009
Renting vs. Buying: Which One is For You?
By Yulun Hung
When it comes to whether you should buy or rent a house, it is almost always better to buy. This is because renting, you are just "throwing your money away", while you can build equity when you buy.
Base on this simple explanation, why do people rent? There are some common reasons to why people are better off renting than buying a home. First, some people do not have enough capital to buy a house. Second, renting gives people more financial freedom to invest their money in somewhere else, such as stocks and bonds. Third, renting is a simple and quick process that might be good for some folks. For example, a family who wish their kids to attend a good public school might rent an apartment in a district that offers good education. Once their kids graduate, the family will move to somewhere cheaper.
If you have enough money to buy a house, it is always a good idea to take buying into consideration. There are a lot of wealthy people that made their fortune through real estate, such as Donald Trump. Our economy might look bad right now, but real estate market will bounce back sooner or later. Once it does, you can sell the house for profit. Plus, there are tax advantages on selling your home in most states. Tax advantages also apply to various mortgages. Lastly, buying a house gives you the pride and freedom to do what you want to the house.